Paid Time Off Benefits

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Paid Time Off Benefits

• Soraya Montgomery
• Daniel Thai
• Tri Phan
• Nick Ionashku

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WHAT ARE PAID TIME OFF BENEFITS? Definition Any
time not worked by an employee in which the
regular rate of pay is accrued and paid to the
employee.
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ARE THEY MANDATED BENEFITS?

• Most paid time off benefits are not mandated
• Employers offer them to be competitive
• and to attract and retain employees

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WHO QUALIFIES TO RECEIVE PAID TIME OFF BENEFITS?

• Varies by employer
• May have to accrue a certain amount of time
  before exercising benefits
• Full-time employees generally have more paid time
  off benefits than part-
• time employees

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LEGAL PUBLIC HOLIDAYS

• Nine or ten days per year
• Recognized by Congress
• NOT recognized by all employers

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LEGAL PUBLIC HOLIDAYS

• New Years Day
• Presidents Day
• Independence Day
• Columbus Day
• Thanksgiving Day

• MLK, Jr. Day
• Memorial Day
• Labor Day
• Veterans Day
• Christmas Day

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• States may have their own local and
• state holidays!
• For example
• California celebrates Cesar Chavez Day on
• March 31st.

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WHO HAS TO WORK ?

• Law Enforcement
• Hospitals
• Emergency Agencies
• May receive holiday pay rate

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EFFECTS ON EMPLOYER

• Boost employee morale
• Employees need family time
• Rest and Relaxation
• Attract Retain Employees

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JURY DUTY

• Your civic responsibility
• Most employers allow paid time off
• Courts provide some compensation
• Most companies give regular pay

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LENGTH OF TIME GRANTED

• Varies depending on jurisdiction of case
• A few hours, a day, a week, a month..
• Employers may require verification
• Done early? May have to report to work

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BENEFIT TO EMPLOYER

• Shows support for the employees
• Employees dont have to worry about financial
  strain / stress
• Gives employees stability

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MATERNITY LEAVE

• Definition
• The period of time during which youre
• disabled due to pregnancy and childbirth.
• up to four months

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PAID FAMILY LEAVE CA SDI

• September 23, 2002
• State of California enacted first-in-the-nation
  paid family leave.

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• July 1, 2004
• Nearly all non-governmental employees eligible to
  receive
• -up to six weeks Family Temporary
• Disability Insurance (FTDI) over a
• twelve month period

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• Benefits will replace wages to cover period
• where a worker is unable to work due to
• -care for an ill child, spouse, parent or
  
• domestic partner
• -birth, adoption, or foster care placement of
  
• a child

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ELIGIBILITY

• Upon hire
• Begin to receive benefits after a seven- day
  waiting period

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• Employers must provide a brochure to
• -employees who start after 1/01/04
• -persons who request Paid Family
• Leave after July 1, 2004

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FUNDING OF FTDI

• Increased payroll deductions 01/2004
• Based on a payroll tax schedule
• Average 27.00 per employee annually
• Top contribution capped at 70.00
• those earning more than 72,000 annually

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• California workers will be able to collect
• -as much as 55 of their salary
• -up to a maximum of 728.00 per week

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• Employers with fewer than 50 employees
• - not subject to Family Medical Leave Act
• of the California Family Rights Act
• -therefore, no legal obligation to hold jobs
  
• open for employees receiving FTDI
• benefits.

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AFFECTS ON EMPLOYERS

• Additional costs
• -overtime to cover absent co-workers
• -locating, hiring, and training
• replacement / temporary workers.

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ADDITIONAL COSTS CONTINUED

• Administering the program
• -verifying medical reasons
• -verifying if the person being cared for
• is a family member

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BENEFITS TO THE EMPLOYER

• Supports employees with financial and job
• stability
• Recruitment retention of personnel

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• Paid Vacation Time
• Military Leave
• Voting Leave
• Leave Banks

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Vacation Time

• Paid vacation time
• Length of service level in the organization
• Employment anniversary date

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Average number of vacation days in the United
States

• Years of service
• Less than 1 year
• 1 year of service
• 2 years of service
• 3 years of service
• 4 years of service
• 5 years of service
• 6 years of service
• 7 years of service
• 8 years of service
• 9 years of service
• 10 years of service
• 11 years of service
• 12 years of service
• 13 years of service
• 14 years of service
• 15 years of service
• More than 15 years of service

• Average days per year
• 9.7
• 9.9
• 10.8
• 11.4
• 11.7
• 13.7
• 14.5
• 15.0
• 15.3
• 15.5
• 16.8
• 17.5
• 17.6
• 17.7
• 17.8
• 18.8
• 20.2

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Effects on employees

• Exempt employees
• Unused vacation days
• Leaving the company
• Part-time workers

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What is a military Leave?

• A military leave of absence is granted to
  employees who are absent from work because of
  service in the U.S. uniformed services
• USERRA-Uniformed Services Employment and
  Reemployment Rights Act

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Military Leave

• Requirements when returning to work
• Less than 31 days
• More than 30 days but less than 181 days
• Longer than 180 days

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Affected Benefits

• Health Plans
• Other health coverage
• Charges

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Voting Leave

• States passing laws
• Pay factors

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Leave Bank

• What is a Leave Bank?
• - Pooled fund of annual leave
• - Provides income protection
• - Used as though the individual had earned
  the leave
• - Substitute LWOP

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Background

• Voluntary Leave Transfer Program
• Extensions
• Federal Employees Leave Sharing Amendments Act of
  1993
• Shared Leave Status instead of
• Transferred Leave Status
• Applies to officers and employees of executive
  agency or military departments.

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A Leave Bank Member

• Contribute annual leave
• Open enrollment period
• Minimum amount of annual leave contributed
• Apply to be a recipient

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Applicants must provide the following information
in writing

1. Name, position title, and grade or pay level
2. Reason why emergency leave is needed
3. Description of nature severity
4. Certification from one or more physicians
5. And any addition information that may be required

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Another Type Of Leave Bank

• Leave Bank as an innovation
• Established by the American Foundation for the
  Blind
• Paid time off (Paid Leave Bank)

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Paid Time Off

• Short Term Disability
• Floating Holidays
• Extended Illness Leave

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SHORT-TERM DISABILITY (STD)

• Definition
• Whats STD
• How does STD works

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SHORT-TERM DISABILITY (STD)
CONTINUES

• Reasons for STD plans to deny
• Benefit employees
• Benefit employers

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SHORT-TERM DISABILITY (STD)
CONTINUES

• Statistics
• 40 percent of companies with 100 employees or
  more offer disability coverage
• Less than 19 percent of companies with less than
  100 employees provide this coverage
• STD plan

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FLOATING HOLIDAYS

• Whats Floating Holidays
• When can it be use

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EXTENDED ILLNESS LEAVE

• Qualification
• Paid Rate

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Sick Leave

• .

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Sick Leave

• Sick leave days are used for
• for personal medical needs
• to take care of family member
• adoption related purposes

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Sick Leave

• For personal medical needs
• If an employee is unable to perform their regular
  tasks and procedures due to physical or mental
  illness, injury, pregnancy, or childbirth.
• If an employee is receiving a medical, dental or
  optical examination or treatment.
• If presence at work jeopardizes the health of
  others

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Sick Leave

• To take care of family member
• A family member is considered
• spouse, child, adopted child, parents and parents
  of spouse, brother and brother of spouse, sister
  and sister of spouse and any individual related
  by blood to the employee.

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Sick Leave

• Who is eligible to accrue sick leave?
• Regular full-time employees.
• Regular part-time employees.
• Often part-time employees accrue sick leave at a
  prorated rate.

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Sick Leave

• California employers dont have to offer sick
  leave but if the do they must comply with laws
  like the new measure, A.B. 109.
• The law applies to all private, state and
  municipal employers regardless of the number of
  people employed.

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Sick Leave

• Demonstration calculator can be found at
• http//www.employeradvice.com/sick_leave_calc_int
  ro.pl

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Utilization of Sick Leave

• According to a survey done by ComPsych
  Corporation on March 9, 2004
• The average number of sick days used per year by
  a salaried exempt employee was 3.8.
• Union hourly employees used 5.5 days.
• Salaried nonexempt employees used 5.6 days

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Utilization of Sick Leave

• According to a survey done by ComPsych
  Corporation on March 9, 2004
• 77 of employees say they show up at work when
  ill.

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Utilization of Sick Leave
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Utilization of Sick Leave

• Reasons why some employees take their sick leave
  days when ill, and others do not, are as follows
  
• 33 said they come to work sick because their
  workload does not permit them take a sick day.
• 26 said they feel the risk of taking off in the
  current work environment.
• 18 said they save their sick leave days for
  children related activities.
• 23 said they take their sick leave days because
  they treasure there health.

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Funeral Leave
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Funeral Leave

• Employees may be approved for leave with pay in
  cases of death of the following a spouse, parent,
  parent-in-law, step-parent, child, step-child,
  grandchild, brother, sister, son-in-law,
  daughter-in-law, aunt, uncle, niece, nephew,
  grandparent or person regarded as member of
  employee's immediate family.

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Funeral Leave

• Some employers will even cover traveling
  expenses, if funeral out of town.
• Typically a total of three days is given to an
  employee, to arrange and attend the funeral.

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Utilization of Funeral Leave

• In 1997, among full-time employees in medium and
  large private establishments, 81 percent were
  eligible to participate in paid funeral leave.

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My Favorite

• Wheel?

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The Benefit Wheel

• External Factors
• Inflation
• Legal Requirements
• Taxation
• Benefit Innovation
• Competition

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The Benefit Wheel

• Internal Factors
• Cost Issue
• Human Resources Management Philosophy
• Business Objectives
• Total Compensation Strategy